Which Way Will Gold’s Roller Coaster Travel in 2012?

Tuesday, January 3rd, 2012

Gold prices ended 2011 up about 10 percent over a year earlier, but prices fell over the last few months of the year. What’s in store for 2012?

The yellow metal has risen in price every year for the past 11 years. But analysts are split over whether the trend will continue in 2012. Still, some of the underlying conditions that tend to lead to high prices for gold — low interest rates and slow economic growth — are likely to continue well into 2012.

So if you agree with that philosophy, it may not make sense to sell your gold or gold-backed investments just yet. In fact, a further dip in price may be considered a buying opportunity. (more…)

How to Invest in Commodities

Thursday, September 29th, 2011

Commodities are things you can touch and feel, like oil, gold and wheat. Some are absolutely necessary, such as food products and raw materials for construction and energy. Others, like gold, do not have that kind of intrinsic worth. But both are at the mercy of the markets to decide their value.

Investing in commodities is sometimes tougher than investing in stocks, because market forces are much harder to predict. (more…)

Gold Prices Plummet as Deflation Worries Arise

Monday, September 26th, 2011

What’s up with the recent plunge in the price of gold? And also for silver and platinum for that matter?

After trading above $1,900 per Troy ounce earlier this month, gold dipped below $1,600 both Friday and Monday (9/26) before settling at about $1,622 in the regular trading session.

What’s behind the dramatic sell-off? (more…)

Whither the Shine in Precious Metals?

Wednesday, May 4th, 2011

Seems like it was only last week that gold and silver were off to the races with gold hitting new all-time highs and silver seriously threatening the amazing $50-an-ounce mark only seen 30 years ago when a pair of wily oil tycoons tried to manipulate the market.

Oh wait, it WAS just last week!

The two most popular precious metals have been sliding in value all this week. In late trading Wednesday (5/4), gold was down $22.20 to $1,518 while silver was off $3.11 for the day to $39.47 — some $8, or nearly 20 percent, off last week’s peak. But is this because market anxiety, often a bullish factor for the metals, has tapered off with the U.S. military takedown of Osama bin Laden?

Not really. (more…)

Death of bin Laden — How Will Markets React?

Monday, May 2nd, 2011

Stock-index futures were higher ahead of Monday’s (5/2) market opening, and commodity prices dipped in the wake of the confirmed death of terror leader Osama bin Laden in a U.S. military special-operations raid. Stocks were modestly higher just after the opening bell as analysts predicted a “feel-good rally” would permeate market sentiment for at least the short term.

Just after the closing bell of the New York Stock Exchange, however, all major stock indices were modestly lower as was crude oil, while precious metals were down sharply for the day.

But what about the longer term? (more…)

Silver Is Outshining Gold for Investors These Days

Monday, April 25th, 2011

Silver reached a stunning 30-year high Monday (April 25), continuing a nine-day winning streak and outpacing gold’s record-setting surge as worries continue over U.S. debt, the value of the dollar and Mideast instability. The shiny gray metal closed Monday above $47 — a price not seen since the Hunt brothers, a pair of wily oil tycoons, tried to corner the silver market back in 1980.

Like gold, silver is seen as a safe haven for investors. The dollar’s weakness and the specter of inflation have driven up the prices of both precious metals. (more…)

Investing in Precious Metals: Bullion or ETF Shares?

Tuesday, August 31st, 2010

Diving into the world of bullion investing can be a scary trip. You have some doomsayers who gasp at the thought of money that’s only as good as the government’s word as they dig another hole in their yard for a few more 100-ounce silver bars. At the same time, you have Wall Street just beginning to respect precious metals as they slowly make their way onto the trading floor in the form of exchange-traded funds. (more…)

Going, Going Gold

Friday, January 8th, 2010

If you want to move a portion of your financial assets into gold, there are several ways to do it. Gold can be a solid segment of your investments, but buyers need to know what the current price of gold is in order to know how much overage they are paying in mark-ups and dealer add-ons.

Generally, if you buy gold without fancy packaging and directly from mints or wholesalers, you’ll pay less than if you buy from retailers or the post office (because the gold has changed hands twice, and the middleman had to be paid). Also, the more gold you buy, the better the price. As your volume increases, the retail price should go down. (more…)